Reporting Backdoor Roth Contribution for 2019 and Conversion for 2020

Forum|Forum|5 years ago
May 2, 2021
6 replies
26 views

So my situation is similar to this one https://ttlc.intuit.com/community/retirement/discussion/how-to-report-backdoor-roth-ira-for-2019-in-2020/01/1607393#M106168 but the answers seem to be conflicting.

In an attempt to do the backdoor roth IRA conversion, I (opened and) made a traditional IRA non-deductible contribution of 6000 for 2019 in June 2020. I then converted this amount to an existing Roth IRA a week later.

Here is the dilemma, due to some online advice I thought I could wait and do everything this year (2020 tax year) so the amount of 6000 wasn't reported in my 2019 tax return when I filed around July 2020.

Now going back to reporting the backdoor roth ira conversion for my 2020 tax, how can I fix this?

Do I need to file an amendment for my 2019 tax return and include Form 8606? I heard you don't have to do amendment based on this https://ttlc.intuit.com/community/after-you-file/discussion/late-filing-of-form-8606/00/1301639 but would like to be sure
Or do I just file form 8606 separately? what about state (I'm in CA)?
so if I do item #1 above, it seems I need to wait for the IRS to process my return before I can file my 2020 tax return. Is that right?
If I do item #2 above only, do I still need to wait for the IRS to process Form 8606 before submitting my 2020 tax return?

Appreciate your help!

DanaB27

Employee Tax Expert

If you did not report the traditional IRA at all on your 2019 return, then you can file only Form 8606.Sign Form 8606 and send it to the IRS at the same time and place you would otherwise file Form 1040. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form: 2019 Form 8606.

If you didn't report and deduct the traditional IRA on your 2019 return then you do not need to amend your CA state return.

Once you have submitted Form 8606 then you can file your 2020 tax return.

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statusquoAuthor

Level 4

Thanks @DanaB27 for the help on this one and the other post as well. I'm starting to understand more after reading some more posts.

Also just to be clear that I made a 2019 non-deductible contribution to my traditional IRA in 2020. I will update the question above to include non-deductible but I believe you understood it?

One quick question, so there is no need to wait for the IRS to receive my 2019 Form 8606 before efiling my 2020 tax with 2020 Form 8606 with the 2019 basis? I can just mail 2019 Form 8606 on the same day I e-file my 2020 tax with 2020 Form 8606? sorry just concerned of the timeline with the delay Form 8606 if the IRS receives my 2020 tax and 2020 Form 8606.

I may need more help filing out Form 8606 (or rather verifying) for 2019 and then make some update to my 2020 Form 8606 with the 2019 Form 8606 cost basis.

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For those who also wonder why there is conflict information about filing form 8606 with 1040X, see this post https://ttlc.intuit.com/community/retirement/discussion/i-neglected-to-file-my-non-deductible-ira-contributions-on-an-8606-for-many-years-is-there-anything/00/66653#:~:text=You%20can%20file%20delinquent%20Forms,reasonable%20cause%20for%20not%20filing and a few comments after that.

DanaB27

Employee Tax Expert

Yes, I understood you made a nondeductible traditional IRA contribution.

Yes, you can e-file your 2020 return after you mailed the 2019 Form 8606. It is best to use some tracking service when you mail the Form 8606 to have confirmation when the IRS receives it.

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